Le Chateau is a leading Canadian niche retailer that provides contemporary style apparel, accessories and shoes or boots. Founded in the 50s by Hershel Segal, the retailer was originally named " Votre Chateau Mens WearвЂќ. The name was changed in 1962 to " Le ChateauвЂќ, when the product supplying grew to feature women's clothes as well. Hershel and Jane Segal use a majority share in the business, where through voting they will control seventy six. 4% with the company (Company Fillings, 2011). At first, Le Chateau's target market and placement were uncertain; however , the company has evolved in a clothing store that appeals to fashion-forward, style-conscious women and men. Through their quick identification of and response to fashion trends, Votre Chateau features successfully created a strong and reputable company. Committed to analysis, design and product development, they get pride inside their vertically bundled operations, for approximately 40% in the apparel is definitely manufactured in its Canadian creation facilities (Annual Report, 2010).

There are currently 238 stores in North America; 236 across Canada and two located in New York City. In addition , you will find nine Votre Chateau locations in the Middle East. As of 2011, the majority of their very own stores can be found in Ontario, a total of 77, with Quebec close behind, seventy stores (Marketline, 2011).

Since 08, the in-store sales have already been steadily lessening (Annual Survey 2010). In the year-end of 2011, Votre Chateau's revenue amounted to $319. apr million, a decrease of 0. 8% in the previous year. This can be described as a consequence of the cautious buyer discretionary spending in the full sector. The brand has viewed an increase in the sales of ladies' clothing; however , it had been largely counter by the revenue decline in the footwear and accessories divisions. Consequently, the brand's EBITDA in 2011 was 14. 7% of sales, compared to 19. 2% in the last year. Placing

In light from the recent decrease in sales, the corporation has attempted to sustain their strength having a high level of liquidity and has begun to pursue a brand new confident direction, referred to as вЂLe Chateau pertaining to renewed growth'. Their current strategy is to maximize revenue and increase shareholder worth while repositioning the brand through further improving the service standards and expanding their offering through foreign guard licensing and training and franchising opportunities. The manufacturer has released their transfering strategy through the revamping of their ladies' portion into a top quality, European-inspired style (Annual Statement, 2010). All their goal is to appeal into a larger demographic of women and ultimately shift all their sections in a similar manner. Aligning with their aim of increasing their customer base, Le Chateau's e-commerce web page was launched this year to supplied a new system to include on-line shoppers within their customer base. Financial Performance

Votre Chateau has followed the overall industry craze with respect to revenue in the past few years. Due to macroeconomic elements, consumers in aggregate had been spending significantly less. While sales have experienced average decreases, product sales per square foot have gotten greater drop offs (Annual Report, 2010). This is due to the continuous opening of stores within a declining revenue environment. For 2011, a decrease of 7% and for 2010, a decrease of 12% was experienced with esteem to product sales per square foot. The combined decline in sales and decreased in EBITDA Perimeter has led to poor net income...

Offered: AME. (2011). Has the Central East's selling sector reached maturity? Recovered March up to 29, 2012, coming from http://www.ameinfo.com/160970.html